Monday, April 6, 2009

Mortgage Scams

Posted By: Sarah Reilly

In today’s economic situation we see that the government is trying to help bail individuals and business out of hard times. During these times the government also has another major issue on hand which is companies and banks taking advantage of their borrowers. This scam is happening more and more, and the government is trying to find ways to protect the people are from those committing mortgage scams. In order to stop this, federal enforcements agencies such as the Federal Trade Commission are using programs such as the “Making Home Adorable Program” to provide a safe and secure program for homeowners to use to prevent them from being scammed by companies and banks who are trying to take advantage or their vulnerable homeowners with fraudulent mortgage schemes.

Many typically companies coming fraud usually charge borrowers an up-front fee to help them get relief from burdensome housing payments but fail to deliver any aid. According to the FTC, some consumers have been charged as much as $3000 in cash but never received any assistance in return. These scams usually use specific key words or slogans which the FTC is compiling to create an index of potentially harmful lenders and advising borrowers from seeking out these organizations.


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